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11/19/2010 10:43AM

Markets Hub: The Fed Under Attack

The Fed is fending off attacks both domestic and international, in what amounts to the biggest wave of criticism of the central bank in recent times. How might that affect the global economy? Kathleen Madigan, Michael Derby and Paul Vigna report.

This transcript has been automatically generated and may not be 100% accurate.

... I ... I did and today the Fed under attack those two things may or may not be related to talk about on ... the market of mine called beanie along Caplin mannequin in my thirty ... morning morning ... still gets to download terrible day after yesterday the of the big rally in the back camera with your Dewan last week or so which is selling off and ... now MP would seem the most of their focus on this story in China about the banks ... of the reserve requirements that the Chinese government ... tightening reserve requirements ... that come with a damper on things ... that the focus to store photos with ATA's China still ... which and in the day unlike any of the day ... on Wednesday took it over the latest things you're going ... to offer Reserve chairman Ben Bernanke gave a speech this morning ... in Germany That's took a look at ... was it was that ... it was an academic sounding speech The with in that the book to ... what's going on with a ... emerging markets in their currencies and remain key in the speech talked about and if it is thinking a lot of grief overseas for ... quantitative easing program begins with the dollar under pressure ... and already it's in the hot money isn't it funny and and and ... leaders in China fear that this hot money is going to ... be already have an inflation problem which was near what they raise the reserve or small river the fear that that the inflation Palm to get worse with the liquidity from coming away fuel ... financial imbalances within their country incident very unhappy with what the Fed is doing for Nanking hit back against that today ... to say that essentially ... if you take your currency the dollar ... you have only yourself to blame for what's happening and of ... earlier this week to Bill Dudley did an interview with CNBC the New York Fed president ... to talk about to inflation and there's an inflation calming China nieces tiny you have the UN torture so no pics EODT yet in ... overseas people investment ... here people are Basham that I can ... ever recall a time with that with this much criticism ... I would help to think that you know when Volcker had to raise rates ... in the Fed funds rate to just write all anti inflation but you know ... there's a whole different media cycle ... back then and so you know he probably did get criticized that wasn't ... echoed so much as it is now time to get these ... you may have some people seeking to regain its independence yet that seems ... to ... be ratcheting up of the criticisms yeti I mean I think ... you know they're active politicians love to bash the Fed been Elsom especially in the tea party ... really wanna rein in the Fed they'll a lot more congressional oversight ... and I think they realize how negatively if credit markets would react with and that's the question what would be the likely ... what might be the market reaction ... to all this ... target said the one thing that would be interest is one of things that aggression was from the Congressional Huntsman talk about is ... refocusing the Fed's mandate on inflation only ... and the ice was one irony in that situation is that that that's to win seems to fade from pursuing a policy that it's pursuing right now if they're on top of their on coupled with quantitative easing ... focusing the fed solely on inflation like the European Central Bank which was changed as well ... winning the Fed really has to be state ... media have to get into any script BP's well they died in part because they're they're not Pentagon Congress for funding ... several contests were to leave the middle peak above one is really good discussion ... of all time we have for comeback of pork EMC Simon on the news called for breaking news all day long stay logged on to dubious J dot com ... be ...